The whitepaper starts with Nick Szabo’s, a computer scientist, explanation regarding smart contracts -they can automate different kinds of processes and operations, most obviously payment and actions conditional on payment. Following are the 12 smart contract use cases.
Digital Identity - on an individual level, smart contracts enable users own and control their own digital identity across factors such as reputation, data, and the digital assets associated with them.
Records - smart contracts can digitize Uniform Commercial Code (UCC) filing and automate record renewal and release, while atomically perfecting a lenders security interest at the moment of a loan creation for factors such as collateral. The smart contract needs to be capable of storing data on a distributed ledger without slowing performance or compromising data privacy.
Securities - smart contracts for capitalization “cap table” management can simplify things such as automatic dividend payments, stock splits, and liability management for private companies.
Trade Finance - on a global scale, smart contracts can facilitate streamlined international goods transfers with higher asset liquidity. Automation around Letter of Credit and trade payment initiation can create a more efficient, less risky process between buyers, suppliers, and financial institutions.
Derivatives - smart contracts can enforce a standard transactional rule set for derivatives (a security with an asset-dependent price) to streamline Over-The-Counter (OTC) financial agreements.
Financial Data Recording - smart contracts can serve as an enterprise-grade accounting ledger to accurately and transparently record financial data. Once blockchain-based standards, interoperability with legacy systems, and a streamlined transaction portal and marketplace develop, the use case could improve everything from financial reporting to auditing.
Mortgages - smart contracts can automate every aspect of the transaction, including payment processing and property liens to make closing on a property and signing a mortgage agreement a faster and more efficient process.
Land Title Recording - property transfers and land title ownership can be rife with fraud and disputes. Smart contracts can facilitate property transfers to improve transaction integrity, efficiency, and transparency.
Supply Chain - smart contracts can provide greater visibility at every step of a supply chain, coordinated with Internet of Things (IoT) devices tracking managed assets and products from factories to the point-of-sale (POS).
Auto Insurance - smart contracts can automate insurance claims to provide near-instantaneous processing, verification, and payment.
Clinical Trials - smart contracts can be a mechanism for cross-institutional visibility and build in privacy-focused rules that improve data sharing between institutions, while automating and tracking patient consent.
Cancer Research - smart contracts can “unleash the power of data” to facilitate the sharing of cancer research. Similar to clinical trials, smart contracts can automate patient data consent management and incentivize data sharing while maintaining patient privacy.
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